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PROTEL Mexico Purchases iTone and WipLL Equipment For Expansion of VoIP Network; First Airspan Sale of a Combined Wireless and VoIP Network

Posted on: Wednesday, 27 July 2005, 18:00 CDT

Airspan Networks, Inc. (Nasdaq:AIRN), a leading worldwide provider of broadband wireless access networks, including WiMAX standard systems, today announced the signing of a contract with PROTEL iNext S.A. de C.V. of Mexico for Airspan's first delivery of a complete end-to-end network solution combining broadband wireless and soft-switch and gateway capability. The contract, valued at more than $2.5 million, covers the supply, installation and maintenance of Airspan's new iTone product lines, including a robust soft-switch, multiple I-Tone MiniPrime Gateways nationwide, I-Tone Network Management System (NMS) and Enhanced SS7 signaling gateway for integration with the national PSTN. The i-Tone product lines were acquired in June from ArelNet. As part of the transaction, PROTEL will deploy and integrate Airspan's WipLL wireless equipment into its Voice over Internet Protocol (VoIP) network, and add a new VoIP billing platform.

PROTEL obtained a concession to operate a public telecommunications network in Mexico in 1995. Today it is expanding to Class 5 operations, offering its customers basic local telephony, point to point microwave, point to multipoint broadband wireless data, and other value added services. The company's fiber optical backbone network extends more than 1,200 miles, linking cities including Mexico City, Guadalajara, Monterrey, Irapuato, Chihuahua, Tijuana and Laredo. At present, its long distance network covers subscribers in 156 cities, together with 21 cities with IP connectivity.

The iTone equipment will be used by PROTEL to expand the VoIP network that was originally built in 2003 on the ArelNet platform. PROTEL will renew and expand VoIP coverage to more than 160 cities and towns. Airspan will also provide gateway equipment for full PSTN interconnection.

The WipLL equipment will operate in the 900MHz and 5.8GHz frequency bands, and will be deployed for last-mile connections to PROTEL's SME customers, most of which are already users of its long distance services on the VoIP network.

Benigno Perez Lizaur, Director General of PROTEL, commented: "We are very pleased with the addition of Airspan's WipLL equipment to our existing iTone VoIP network. Airspan has been able to successfully demonstrate to us very soon after its acquisition of ArelNet the value of the combination of WipLL's coverage and IP capabilities with the VoIP attributes of iTone, on which we have already successfully deployed our network. The combination perfectly complements our market strategy and network rollout, providing us with a leading-edge technology that will enable us to address our target market of high-end business broadband customers in the most economical and flexible manner, and allowing us to offer both data and Voice-over-IP solutions. It allows us to meet the demand of our enterprise customers for the latest technological innovations. Airspan's evolution path for integration of the iTone platform into its broadband wireless systems, which will become the basis of many of Airspan's WiMAX offerings, assures us that we will be able to add WiMAX to our system in future."

"We are very excited to supply PROTEL with our newest combination of broadband wireless and VoIP systems," said Amit Ancikovsky, Airspan's Vice President and General Manager, Latin America. "The purchase of our combined I-Tone and WipLL platforms will enable PROTEL to have a smooth and rapid integration and deployment process for its long-distance and last-mile services and attract the high-end enterprise customers it seeks for reliable, high-quality data connectivity. "

Airspan's WipLL platform is a low-cost high-performance Fixed Wireless Access system designed to deliver high-speed data, Voice over IP (VoIP) and multimedia services to residential, small business and enterprise customers. WipLL introduces real-time adaptive modulation (2-, 4-, 8-level FSK) and auto retransmission request (ARQ); features that offer high quality services whilst maximizing spectrum utilization. WipLL is available in both licensed bands (700 MHz, 1.5GHz and 2.3GHz, 2.5GHz, 2.7-2.9GHz and 3.4-3.8GHz) and unlicensed bands (900MHz, 2.4GHz and 5.8GHz), and will soon support PCS licensed (1.9FDD); PCS unlicensed (1.9TDD); DCS 1800MHz (1.8GHz FDD); 2.02GHz TDD and 1.795GHz TDD.

Airspan's new iTone VoIP system is a carrier class, turnkey solution that provides carriers with Class 4 and Class 5 solutions. i-Tone's design provides customers; carriers, next-generation telcos, cellular providers and ITSP with a wide range of solutions with the best price/performance system for IP telephony. i-Tone, a scalable solution with no single point of failure, presents a robust support system starting with several hundreds of ports up to hundreds of thousands of ports using a unique redundant topology.

About Protel iNext S.A. de C.V.

PROTEL operates in Mexico under various trade names and concessions, offering its customers basic local telephony, point to point microwave, point to multipoint broadband wireless data, and other value added services.

For more information, please visit: http://www.protel.com.mx

About Airspan Networks Inc.

Airspan Networks provides broadband wireless voice and data systems and solutions, including Voice Over IP (VoIP), to both licensed and unlicensed operators around the world in frequency bands between 700 MHz and 6 GHz, including both PCS and 3.5GHz international bands. Airspan has a strong product evolution roadmap that includes offerings compliant with the new 802.16-2004 standard, and with built-in 802.16e capability. Airspan is on the Board and a founder member of the WiMAX Forum. The Company has deployments with more than 300 operators in more than 80 countries. Airspan's systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing an attractive alternative to traditional wired communications networks. Airspan also offers radio planning, network installation, integration, training and support services to facilitate the deployment and operation of its systems. Airspan is headquartered in Boca Raton, Florida with its main operations center in Uxbridge, United Kingdom.

More information on Airspan can be found at http://www.airspan.com. Information about iTone can also be found at http://www.arelnet.com/

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including statements regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management, may be deemed to be forward-looking statements. The words "anticipates,""believes,""estimates,""expects,""intends,""may,""plans,""projects,""will,""would" and similar expressions or negative variations thereof are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Investors and others are therefore cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) a slowdown of expenditures by communication service providers; (ii) increased competition from alternative communication systems; (iii) the failure of our existing or prospective customers to purchase products as projected; (iv) our inability to successfully implement cost reduction or containment programs; (v) a loss of any of our key customers; (vi) our ability to retain our single largest existing customer; (vii) our ability to continue to sell the existing inventory of Nortel Network's fixed wireless business on purchase terms and conditions comparable to those currently utilized, and (viii) specific to this press release, Airspan's ability to successfully deliver and service its combined WipLL and iTone products in PROTEL's networks; PROTEL's ability to deploy the networks sold and to sell services on the networks and to pay for the equipment. The Company is also subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K/A for the year ended December 31, 2004. You should read those factors as being applicable to all related forward-looking statements wherever they appear in this press release. We do not assume any obligation to update any forward-looking statements.

Source: Business Wire

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